U.S. Invests $700M to Fight Addiction and Homelessness

Communities across America are getting major new resources to help people struggling with addiction and mental illness find their way off the streets and into recovery.

The Department of Health and Human Services announced $708 million in funding opportunities this week, with programs designed to connect homeless individuals with comprehensive treatment and support. Secretary Robert F. Kennedy Jr. made the announcement during a visit to a Michigan behavioral health clinic, highlighting the federal commitment to addressing intertwined crises of addiction, mental illness, and homelessness.

The centerpiece is the new STREETS program, which will award eight communities up to $12 million each over four years. These grants will help cities build coordinated systems where local government, health providers, housing agencies, law enforcement, and courts work together to engage people on the streets and guide them into treatment.

The funding recognizes that helping someone recover requires more than just one service. STREETS emphasizes rapid engagement, evidence-based treatment, and ongoing recovery support, all delivered through a community-wide approach that brings multiple partners to the table.

Beyond STREETS, the package includes $223 million to expand Certified Community Behavioral Health Clinics, which provide comprehensive mental health and addiction care in local communities. Another $239 million will strengthen the 988 Suicide and Crisis Lifeline, improving response times and follow-up care for people in crisis. An additional $80 million supports prevention programs, rural emergency services, treatment courts, and recovery support for families.

The funding comes as communities nationwide grapple with visible homelessness and substance use challenges. Many cities have struggled to coordinate their response across different agencies and services, leaving people cycling through emergency rooms, jails, and shelters without accessing sustained treatment.

The Ripple Effect

When someone moves from homelessness into stable recovery, entire communities benefit. Neighborhoods become safer, emergency services can focus resources elsewhere, and families begin healing. Most importantly, individuals regain dignity and hope for their futures.

The emphasis on evidence-based treatment and coordinated community response marks a shift toward addressing root causes rather than managing symptoms. By bringing together housing, health care, law enforcement, and social services, cities can offer people comprehensive pathways out of crisis.

For the eight communities that will receive STREETS funding, this represents a chance to pioneer new models of care that other cities can learn from and adapt. The focus on rapid engagement means meeting people where they are and building trust before expecting change.

Application periods for these programs are now open, with awards expected later this year. Communities interested in applying can find details through the Substance Abuse and Mental Health Services Administration website.

Hundreds of millions in federal support signals that recovery is possible when communities have the resources and coordination to help people heal.